- Donald Trump’s tariff terrorism has unleashed a Frankenstein monster that will singe the entire world in more than one way. What was being dreaded by the global community ever since Trump assumed office of the President of the United States of America is coming true in a torrent. The term reciprocal tariff invented by the maverick leader, has ensured the whole world trembles with the stock markets on a downward spiral wiping out humongous amounts of money in a trice. It’s anybody’s guess as to what goes between the ears of the President, who is hell bent on pressing ahead with his moves to Make America Great Again. Unfortunately, indications are contrary to his belief, with the meltdown suggesting no less than a bloodbath on the streets of the stock markets.
PC: Adobe Stock
- As if on cue, the Indian stock markets have witnessed the global fallout. But is there an opportunity for the Indian think tank to make good from the fast-evolving mayhem across the world? Indeed. Why only India, even Vietnam can make the best of the situation by addressing one of the iconic American company’s supply chain woes following the Liberation Day bloodbath. Apple, the world’s most valuable company, saw its shares slide 16% over last week. The April 2 tariffs have it in a pincer grip. China, which still assembles about 80% of the about 220mn iPhones sold in a year, has been hit with a 54% tariff. Analysts say this could mean a whopping 40% rise in iPhone prices. They are still lifting their jaws off the ground following Trump’s knocking out American icons like this.
PC: Eraspace
- Of course, Apple must deal with this blow in a flattening smartphone market. In its woes is the story of all businesses scrambling to rejig their global supply chain in the stormy new tariff war. As reported, the company has already made an unusually high number of shipments to the US from factories in India and China. So, it may be able to hold off a retail price hike for a bit. India, which assembles around 15% of iPhones, has been hit with a 26% tariff. This is lower than China’s but way more than companies planned for when they started diversifying here, impelled by Trump’s first term and then by COVID-19. India, however, saw limited benefits from this China Plus strategy compared to countries like Vietnam. Therein lies the crux of the matter.
PC: Asia Times
- Further, factors ranging from simplifying tax laws to proactively signing FTAs helped the others pull ahead of us in expanding their export shares. This time around, the stakes are even higher. China’s now thrown retaliatory tariffs into the ring. Between China and the US, things are bound to get worse. Other countries hope to get happier hearing. Vietnam has talked to Trump to soften the tariff blow. Vietnam has a $123.46bn trade surplus with the US, compared to India’s $45.66bn. They will both do what it takes to benefit from the strategic decoupling of the US from China. If the April 2 tariffs stay sticky, it should be to India’s advantage. Nonetheless, the ifs are infinite. Indian think tanks should make judicious moves to derive advantage out of the unfolding adversity.
